Proftpd Login Issues (only able to log into localhost )

I've searched on this issue but couldn't find an answer to my question. I'm currently trying to ftp into one of the sites I've set up on ISPConfig. Whenever I try to log in (using the web2_xxx login) I get the 530 user cannot log in error.

Also, as an update I found out that if I add my website to my hosts file I'm able to login just fine. So it appears to be an external internet issue (which is why I can log in fine a localhost). Do I need to specifically set up DNS entries to handle ftp://mysite.com ?

I was originally going to use ISPConfig to handle the name servers but I wasn't having any luck getting it to work (I followed the go daddy tutorial to set up name servers, and I was able to access ns1.mysite.com and ns2.mysite.com from outside my network, but the websites which were supposed to be handled by the nameserver never came up).

So at the moment all of my sites are being handled by zonedit.com. I can access www.mysite.com from outside my network, and ftp://mysite.com brings up a login/pw box but whenever I enter it I get the 530 error. I configured zonedit to handle www.mysite.com and mysite.com.